The Crisis Is Imminent: When The Real Crash Comes It Will Be Worse Than the Great Depression

The United States is like the Titanic, and Im here with the lifeboat trying to get people to leave the ship I see a real financial crisis coming for the United States.

Peter Schiff August 2006

In 2006, when he faced off with many well known Titans of investing and warned of an impending financial disaster and economic collapse, Peter Schiff was laughed at by his colleagues. He urged Americans to exit financial markets and take steps to protect themselves before the wealth held in their savings accounts, retirement investments and real estate was wiped out.

Few listened.

We know what happened next.

Now, those same financial experts who publicly vilified Schiff for his predictions six years ago are at it again. Many, including our politicians, central bankers and leading economists, have unequivocally stated that the worst is behind us, and that a global recovery is on the horizon.

Once again, Peter Schiff disagrees:

I think we are heading for a worse economic crisis than we had in 2007, Schiff said. Youre going to have a collapse in the dollar a huge spike in interest rates and our whole economy, which is built on the foundation of cheap money, is going to topple when you pull the rug out from under it.

According to Schiff, these numbers are unsustainable. And the Fed has no credible exit strategy.

Eventually interest rates will rise and when they do, Schiff says, stocks will tank and bonds dip to nothing. Massive new tax hikes will be imposed and programs and entitlements will be cut to the bone.

The crisis is imminent, Schiff said. I dont think Obama is going to finish his second term without the bottom dropping out. And stock market investors are oblivious to the problems.

Were broke, Schiff added. We owe trillions. Look at our budget deficit; look at the debt to GDP ratio, the unfunded liabilities. If we were in the Eurozone, they would kick us out.

The Fed knows that the U.S. economy is not recovering, he noted. It simply is being kept from collapse by artificially low interest rates and quantitative easing. As that support goes, the economy will implode.

A noted economist, Schiff has been a fierce critic of the Fed and its policies for years. And his warnings have proven to be prophetic.

His recent warnings, however, have been even more alarming. Will they also prove to be true?

In his most recent book, The Real Crash How to Save Yourself and Your Country, Schiff writes that when the real crash comes, it will be worse than the Great Depression.

Unemployment will skyrocket, credit will dry up, and worse, the dollar will collapse completely, wiping out all savings and sending consumer prices into the stratosphere.

All we can do now is prepare for the crash, Schiff said. If we brace ourselves properly and control the impact, we will survive it.

Indeed.

We must understand that none of the fundamental problems leading up to the 2007/2008 financial crisis have been resolved.

If anything, its gotten worse.

Our politicians will not change, and therefore, will change nothing in Washington. Wall Street is as corrupt as ever. Our central bank continues to devalue our currency. There is no end in sight for these people. They will continue on this unsustainable path until we as a country finally hit the proverbial brick wall.

As Peter Schiff notes, the destruction to life as we know it in America and the world is imminent. Its going to be severe.

So much so that the government has been simulating the collapse of our financial system, the collapse of our society and the potential for widespread violence.

The problem as I see it is this. He said this in 2006. This is 2013 7 years later. Nobody believes it now. Well most don't. Anybody that can do basic math knows the economy CAN NOT sustain the massive DEBT. When will it happen. . . . . . What will it entail? Kinda like POLISI (sp) and her "We have to pass it to see what's in it". Once it happens we will find out how bad it really is. . . ZERO and the LSM will blame Bush. 47% will believe that.

5
posted on 04/30/2013 3:37:52 AM PDT
by DeaconRed
(Call it what it is: Attempt at People Control: NOT GUN CONTROL. Gun control is holding it steady.)

I have this feeling its very imminent, and that I need to liquidate some possessions very soon and just leave the country for about two years.

Nobody is fighting, nobody gives a damm and or trying to even organize any movement. I don’t see any mass resistance, no Revolutionary forces mustering or marching, everybody is too dammed scared to go up against Obama, and those that say they will though numerous have no collective goal and thus will never amount to anything more than a bug smear on a windshield.

7
posted on 04/30/2013 3:48:26 AM PDT
by Spartan302
(Spartans never quit, they come back later with more warriors.)

I don’t know how to protect myself either ,,, I’m thinking buying good land on a long term dollar denominated loan and setting aside the payment money ahead of time to get larger lots cheaply when the dollar crashes.

People talk of barter goods ...

I can’t stop thinking of the smarties that bought IBM and Coca Cola during the 1930’s/40’s after the bottom...

I don’t see any salvation except an asset backed currency ,, wishing a few states issues oil backed notes or silver/gold backed notes. Canadian $$$ is good because of their oil and lumber resources.

8
posted on 04/30/2013 3:52:53 AM PDT
by Neidermeyer
(I used to be disgusted , now I try to be amused.)

The only true way to preserve wealth is to preserve your ability to create it. Ever wonder how a millionaire can lose everything and be back on top a few years later, yet a lottery winner will manage to be broke in that same time?

9
posted on 04/30/2013 3:53:07 AM PDT
by Sirius Lee
(All that is required for evil to advance is for government to do "something")

I can see it in the lower 48 but I am cursed with living in Alaska that has gone libertarian, they would rather stand in the middle of the road getting their head smacked by mirrors of opposing political vehicles. Alaskans used to be conservative.

Too timid to fight, too much hooked on handouts.

And by being in Alaska its too far to be where the action will be.

15
posted on 04/30/2013 4:17:50 AM PDT
by Spartan302
(Spartans never quit, they come back later with more warriors.)

1) The whole earth's economy will be in collapse.2) We are Americans - we will right this ship together (well, the Patriots anyway).3) We are Americans - this is OUR country.4) We are Americans - we don't run and we don't lay down.

18
posted on 04/30/2013 4:18:48 AM PDT
by Psalm 73
("Gentlemen, you can't fight in here - this is the War Room".)

The world is a dangerous place, always on the edge of destabalization but kept in check by fear of superpowers.

Ive been saying five things for the last year or two:
1. This thing could get as bad as, or worse than, the great depression (GD).
2. The GD ended with WWII.
3. The US is a form of worldwide empire with colonies like South Korea, Taiwan, India, Etc.
4. As the world economy collapses, countries like NK will be both desperate and emboldened to take military action against one of our colonies in near proximity. The result could actually ultimately end up with a hot war fought on US soil. Im talking about the 50 states.
5. Somewhat related to the four but more domestic in scope, expect a serius (sic) uptick in domestic violence, divorce, murder and various other crimes.

The Crisis Is Imminent: When The Real Crash Comes It Will Be Worse Than the Great Depression

The United States is like the Titanic, and Im here with the lifeboat trying to get people to leave the ship I see a real financial crisis coming for the United States.

Peter Schiff August 2006

He must be reading my posts because I’ve said both on numerous occassions. I don’t get into elections all that much because I see it as having captain and crew elections AFTER the ship has gone dead in the water and the water is now above C deck. They are an exercise in futility. My focus is on finding hammers and nails so I can make my family a lifeboat out of deck chairs.

I was just mentioning to someoen this weekend that one talking head said, a couple of hears ago, that these things always take longer to happen than those that see it coming think it will, but once it does happen it unfolds with a rapidity even they did not expect. Have you ever laid on the ground during a rainstorm and watched a raindrop come toward your head? It seems to cover the last foot a hundred times faster than the distance before it.

I’m already seeing it speed up. Even NPR’s in depth report yesterday about the fallout from obamacare was extremely gloomy. And yes, I think Obamacare could be the straw that broke the camels back, mainly because it’s really a bundle of rebar. Extra thick.

If we go down, the whole planet goes down with us. There will be no other place to “ride it out”.

Yep. It’s why I moved to my small farm in central KY in the spirit of Revelation 18:4

My personal opinion is that this will get VERY ugly. Worse than most people can imagine. However, I’ve also been amazed at how they can STILL kick the can down the road, though with each kick, the distance is shorter.

They are now printing almost an additional one trillion a year. That means that as you and I may reducing our debt, our government is borrowing, on our behalf, $3,300 per year for every member of your family.

And Interest rates are going nowhere. They can’t. They would put a knife to our economy in one day. It would be easier to eliminate welfare.

That will depend on location. States and counties determine property taxes. Age and income usually also qualify someone for Homestead Tax relief of some sort.

We are seeing a lot of people buying property where we live and many are buying with cash from IRAs. Taxes, of course, have gone up. I see ads for rental apartments in villages that are asking $700/month. But, evidently, people are paying that.

We know someone who turned a large IRA into a fortune in real estate with an impressive cash flow. I realize all the costs involved, but, from what I can see, there is still profit to be had.

The kicker comes when they try to liquidate for cash. Ask a family farmer with 500 acres just how much he would realize in a sale. And that doesn’t even factor in the estate taxes his heirs will pay.

Just check out what happened in the UK when the British Sterling crashed and lost it's status as the world's reserve currency. It will be at least that bad no doubt.

Interest rates will eventually go up to reflect the risk of holding US dollars; other countries will eventually stop loaning us money.

It's possible that the US Government could sell off some of the Land/Resources that they claim in various states to help settle the debt.

A well - balanced portfolio should contain about 10% precious metals, and real estate under normal circumstances. Any necessity that you can get at today's prices rather than tomorrow’s inflated values makes sense no matter what happens.

I tend to think that people living in the bible belt outside the Metro Areas will be better off on their farms outside the many small towns.

There is no doubt that being debt free and living in a home with no mortgage gives one a better chance to survive. Just buy some hard assets such as gold or silver to allow yourself to pay your real estate taxes and some additional needs.

Unfortunately, many people can not get debt free in time to beat the collapse. So there is going to be a world of hurt, and life will have some big adjustments.

Will the cities burn worse than they did during the 60’s and 70’s. I don't know. Do everything you can to prepare for the worst and hope for the best. That's the way I have always lived, and it's no different now.

50
posted on 04/30/2013 5:48:33 AM PDT
by greeneyes
(Moderation in defense of your country is NO virtue. Let Freedom Ring.)

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